redCity Search Company Inc.
TSX VENTURE : RDC

redCity Search Company Inc.

February 03, 2006 09:44 ET

redCity Search Company Inc. Announces Final Closing of Private Placement

TORONTO, ONTARIO--(CCNMatthews - Feb. 3, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES

REDCITY SEARCH COMPANY INC. ("redCity" or the "Company")(TSX VENTURE:RDC), a leader in local online search technology, announces that it has completed all closings of its previously announced private placement of units. redCity sold a total of 3,410,000 units, at $0.25 per unit, for total gross proceeds of $852,500. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant is exercisable for one common share of redCity, at a price of $0.30 per share, at any time up to December 20, 2007.

At the initial closing, completed on December 21, 2005, a total of 3,200,000 units were sold for gross proceeds of $800,000. At the final closing, completed on February 1, 2006, a total of 210,000 units were sold for gross proceeds of $52,500. As previously reported, related parties to redCity purchased a total of 2,000,000 units for gross proceeds of $500,000.

The securities offered pursuant to the private placement have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

All currencies are stated in Canadian dollars.

About redCity Search Company Inc.

redCity Search Company Inc. (www.redcitysearch.com) is a leader in local online search technology. It was established in 2003 and is Toronto's first publicly listed local search engine technology company (TSX VENTURE:RDC). Its search websites include www.redToronto.com and www.redmississauga.ca. It also publishes The Red Pages®, a print directory of the websites of local Toronto businesses that is distributed to approximately 400,000 households and businesses across Toronto. The websites and directory connect consumers to small- and medium-size businesses across the two cities. All Toronto and Mississauga area businesses are entitled to complementary listings and website links, as the service is supported by advertising revenue.

FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this news release. Actual results could differ materially from those anticipated in the statements due to risks and uncertainties which affect the Company's business and operations. Reference should be made to the Company's continuous disclosure documents filed from time to time with Canadian securities regulatory authorities for a detailed description of such risks and uncertainties. The Company takes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.



The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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